Deck 18:Flexible Budgets, Standard Costs, and Variance Analysis

Question 1

The manufacturing overhead variance that is a measure of capacity utilization is:

A)the overhead rate variance.
B)the overhead efficiency variance.
C)the overhead budget variance.
D)the overhead volume variance.

Answer 1

the overhead volume variance.

Question 2

In a standard costing system, if the actual fixed manufacturing overhead cost exceeds the budgeted fixed manufacturing overhead cost for the period, then fixed manufacturing overhead cost would be underapplied for the period.

Answer 2

False

Question 3

A company has a standard cost system in which fixed and variable manufacturing overhead costs are applied to products on the basis of direct labor-hours.The company's choice of the denominator level of activity has no effect on the fixed portion of the predetermined overhead rate.

Answer 3

False

Question 4

There can be no volume variance for variable manufacturing overhead.

Question 5

The fixed manufacturing overhead budget variance equals:

A)Actual fixed manufacturing overhead cost - Applied fixed manufacturing overhead cost.
B)Actual fixed manufacturing overhead cost - Budgeted fixed manufacturing overhead cost.
C)Budgeted fixed manufacturing overhead cost - Applied fixed manufacturing overhead cost.
D)Actual fixed manufacturing overhead cost - (Actual hours × Standard fixed manufacturing overhead rate).

Question 6

The higher the denominator activity level used to compute the predetermined overhead rate, the higher the predetermined overhead rate.

Question 7

Dori Castings is a job order shop that uses a standard cost system.Manufacturing overhead costs are applied on the basis of standard direct labor-hours. The amount of fixed manufacturing overhead that Dori would apply to finished production would be:

A)the actual direct labor-hours times the standard fixed manufacturing overhead rate per direct labor-hour.
B)the standard hours allowed for the actual units of finished output times the standard fixed manufacturing overhead rate per direct labor-hour.
C)the standard units of output for the actual direct labor-hours worked times the standard fixed manufacturing overhead rate per unit of output.
D)the actual fixed manufacturing overhead cost per direct labor-hour times the standard hours allowed.

Question 8

Sulema, Inc.repairs and refinishes antique furniture.Manufacturing overhead at Sulema is applied to production on the basis of standard direct labor-hours.Which overhead variance(s)at Sulema would be unfavorably affected if a significant amount of glue is being wasted by inexperienced direct labor workers?

A)variable overhead rate variance
B)variable overhead efficiency variance
C)fixed manufacturing overhead budget variance
D)fixed manufacturing overhead volume variance

Question 9

A company has a standard cost system in which fixed and variable manufacturing overhead costs are applied to products on the basis of direct labor-hours.The company's choice of the denominator level of activity has no effect on the fixed manufacturing overhead budget variance.

Question 10

Teall Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs).The company has provided the following data for the most recent month: What was the fixed manufacturing overhead budget variance for the month?

A)$4,000 Unfavorable
B)$4,000 Favorable
C)$570 Favorable
D)$570 Unfavorable

Question 11

A volume variance and budget variance are computed for fixed manufacturing overhead costs.

Question 12

A fixed manufacturing overhead budget variance occurs as the result of a difference between the denominator level of activity (in hours)and the standard hours allowed for the actual output of the period.

Question 13

A company has a standard cost system in which fixed and variable manufacturing overhead costs are applied to products on the basis of direct labor-hours.A fixed manufacturing overhead volume variance will necessarily occur in a month in which actual direct labor-hours differ from standard hours allowed.

Question 14

Azzurra Corporation manufactures computer chips used in aircraft and automobiles.Manufacturing overhead at Azzurra is applied to production on the basis of standard machine-hours.Which overhead variance(s)at Azzurra would be affected in an unfavorable manner if fire and theft insurance rates increase by 25% unexpectedly during the period?

A)variable overhead rate variance
B)variable overhead efficiency variance
C)fixed manufacturing overhead budget variance
D)fixed manufacturing overhead volume variance

Question 15

A company has a standard cost system in which fixed and variable manufacturing overhead costs are applied to products on the basis of direct labor-hours.A fixed manufacturing overhead volume variance will necessarily occur in a month in which the fixed manufacturing overhead applied to units of product on the basis of standard hours allowed differs from the budgeted fixed manufacturing overhead.

Question 16

If the standard hours allowed for the actual output of the period is greater than the denominator level of activity (in hours), then the overhead volume variance will be favorable.

Question 17

The economic impact of the inability to reach a target denominator level of activity would best be measured by:

A)the amount of the volume variance.
B)the contribution margin lost by failing to meet the target denominator level of activity.
C)the amount of the fixed manufacturing overhead budget variance.
D)the amount of the variable overhead efficiency variance.

Question 18

The volume variance is nonzero whenever:

A)standard hours allowed for the output of a period differ from the denominator level of activity.
B)actual hours differ from the denominator level of activity.
C)standard hours allowed for the output of a period differ from the actual hours during the period.
D)actual fixed manufacturing overhead costs incurred during a period differ from budgeted fixed manufacturing overhead costs as contained in the flexible budget.

Question 19

The budget variance for fixed manufacturing overhead is the difference between actual fixed manufacturing overhead costs incurred and the amount of fixed manufacturing overhead applied to work in process.

Question 20

An unfavorable volume variance means that the company operated at an activity level greater than that planned for the period.

Question 21

Lossing Corporation applies manufacturing overhead to products on the basis of standard machine-hours.Budgeted and actual overhead costs for the most recent month appear below: The company based its original budget on 5,100 machine-hours.The company actually worked 4,800 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 4,980 machine-hours.What was the overall fixed manufacturing overhead volume variance for the month?

A)$3,150 Unfavorable
B)$3,150 Favorable
C)$1,260 Unfavorable
D)$1,260 Favorable

Question 22

Dapice Incorporated makes a single product--a critical part used in commercial airline seats.The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period.Data concerning the most recent year appear below: The fixed overhead volume variance is:

A)$5,121 U
B)$5,121 F
C)$21,121 F
D)$21,121 U

Question 23

Likes Incorporated makes a single product--a cooling coil used in commercial refrigerators.The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period.Data concerning the most recent year appear below: The total amount of manufacturing overhead applied is closest to:

A)$488,400
B)$424,320
C)$432,640
D)$498,000

Question 24

Rodarta Corporation applies manufacturing overhead to products on the basis of standard machine-hours.The company's predetermined overhead rate for fixed manufacturing overhead is $1.20 per machine-hour and the denominator level of activity is 6,600 machine-hours.In the most recent month, the total actual fixed manufacturing overhead was $8,340 and the company actually worked 6,400 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 6,480 machine-hours.What was the overall fixed manufacturing overhead volume variance for the month?

A)$240 Favorable
B)$144 Unfavorable
C)$240 Unfavorable
D)$96 Favorable

Question 25

Stopher Incorporated makes a single product--a cooling coil used in commercial refrigerators.The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period.Data concerning the most recent year appear below: The variable component of the predetermined overhead rate is closest to:

A)$1.67 per machine-hour
B)$1.81 per machine-hour
C)$1.76 per machine-hour
D)$1.19 per machine-hour

Question 26

Ronda Manufacturing Corporation uses a standard cost system with machine-hours as the activity base for overhead.Last year, Ronda incurred $840,000 of fixed manufacturing overhead and generated a $42,000 favorable fixed manufacturing overhead budget variance.The following data relate to last year's operations: What amount of total fixed manufacturing overhead cost did Ronda apply to production last year?

A)$837,900
B)$840,000
C)$926,100
D)$972,405

Question 27

Surma Incorporated makes a single product--a critical part used in commercial airline seats.The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period.Data concerning the most recent year appear below: The fixed component of the predetermined overhead rate is closest to:

A)$5.43 per machine-hour
B)$5.57 per machine-hour
C)$6.51 per machine-hour
D)$6.68 per machine-hour

Question 28

Gregorich Incorporated makes a single product--a critical part used in commercial airline seats.The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period.Data concerning the most recent year appear below: The fixed overhead budget variance is:

A)$20,000 U
B)$20,000 F
C)$62,070 F
D)$62,070 U

Question 29

Thilges Incorporated makes a single product--a cooling coil used in commercial refrigerators.The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period.Data concerning the most recent year appear below: The variable overhead efficiency variance is:

A)$1,740 U
B)$1,398 F
C)$1,740 F
D)$1,398 U

Question 30

The Rowe Corporation uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard machine-hours.During January, the company budgeted to incur $225,000 in manufacturing overhead cost and to operate at a denominator activity level of 25,000 machine-hours.At standard, each unit of finished product requires 3 machine-hours.The following cost and activity were recorded during January: The amount of overhead cost that the company applied to Work in Process for January was:

A)$217,750
B)$225,000
C)$221,600
D)$216,000

Question 31

At the beginning of last year, Tarind Corporation budgeted $75,000 of fixed manufacturing overhead and chose a denominator level of activity of 150,000 machine-hours.At the end of the year, Tari's fixed manufacturing overhead budget variance was $2,250 favorable.Its fixed manufacturing overhead volume variance was $3,750 favorable.Actual direct labor-hours for the year were 156,250.What was Tari's total standard machine-hours allowed for last year's output?

A)157,500
B)162,000
C)164,000
D)142,500

Question 32

Dellarocco Incorporated makes a single product--a cooling coil used in commercial refrigerators.The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period.Data concerning the most recent year appear below: The fixed overhead budget variance is:

A)$37,328 U
B)$37,328 F
C)$17,000 F
D)$17,000 U

Question 33

Diehl Corporation uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours.The company's total applied factory overhead was $315,000 last year when the company used 32,000 direct labor-hours as the denominator activity.If the variable factory overhead rate was $8 per direct labor-hour, and if 30,000 standard direct labor-hours were allowed for the output of the year, then the total budgeted fixed factory overhead for the year must have been:

A)$60,000
B)$80,000
C)$90,000
D)$100,000

Question 34

Carattini Incorporated makes a single product--an electrical motor used in many long-haul trucks.The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period.Data concerning the most recent year appear below: The total amount of manufacturing overhead applied is closest to:

A)$340,376
B)$342,000
C)$312,900
D)$372,000

Question 35

Recht Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $9.30 per machine-hour and fixed manufacturing overhead cost of $17,940 per period.If the denominator level of activity is 1,200 machine-hours, the fixed element in the predetermined overhead rate would be:

A)$14.95
B)$930.00
C)$24.25
D)$9.30

Question 36

Figures Incorporated makes a single product--an electrical motor used in many long-haul trucks.The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period.Data concerning the most recent year appear below: The variable overhead efficiency variance is:

A)$5,389 F
B)$5,389 U
C)$4,896 F
D)$4,896 U

Question 37

Hoag Corporation applies manufacturing overhead to products on the basis of standard machine-hours.Budgeted and actual fixed manufacturing overhead costs for the most recent month appear below: The company based its original budget on 2,600 machine-hours.The company actually worked 2,280 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 2,080 machine-hours.What was the overall fixed manufacturing overhead volume variance for the month?

A)$4,352 Favorable
B)$4,352 Unfavorable
C)$7,072 Unfavorable
D)$7,072 Favorable

Question 38

The Marlow Corporation uses a standard cost system and applies manufacturing overhead to products on the basis of standard direct labor-hours.The denominator activity is set at 40,000 direct labor-hours per year.Budgeted fixed manufacturing overhead cost is $40,000 per year, and 0.5 direct labor-hours are required to manufacture one unit.The standard cost card would indicate fixed manufacturing overhead cost per unit to be:

A)$1.00
B)$2.00
C)$1.50
D)$0.50

Question 39

Harris Corporation uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours (DLHs).The company has provided the following data: The volume variance would be:

A)$2,500 F
B)$1,800 F
C)$1,800 U
D)$1,500 F

Question 40

Gallucci Incorporated makes a single product--a critical part used in commercial airline seats.The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period.Data concerning the most recent year appear below: The predetermined overhead rate is closest to:

A)$7.53 per labor-hour
B)$7.85 per labor-hour
C)$14.31 per labor-hour
D)$14.92 per labor-hour

Question 41

Mclellan Corporation applies manufacturing overhead to products on the basis of standard machine-hours.Budgeted and actual overhead costs for the month appear below: The company based its original budget on 6,100 machine-hours.The company actually worked 6,480 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 6,370 machine-hours.What was the overall fixed manufacturing overhead budget variance for the month?

A)$500 Favorable
B)$500 Unfavorable
C)$1,570 Favorable
D)$1,570 Unfavorable

Question 42

Kiker Incorporated makes a single product--an electrical motor used in many long-haul trucks.The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period.Data concerning the most recent year appear below: The predetermined overhead rate is closest to:

A)$9.57 per machine-hour
B)$12.11 per machine-hour
C)$7.57 per machine-hour
D)$15.32 per machine-hour

Question 43

Merone Corporation applies manufacturing overhead to products on the basis of standard machine-hours.The company bases its predetermined overhead rate on 2,300 machine-hours.The company's total budgeted fixed manufacturing overhead is $5,060.In the most recent month, the total actual fixed manufacturing overhead was $4,660.The company actually worked 2,200 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 2,320 machine-hours.What was the overall fixed manufacturing overhead volume variance for the month?

A)$220 Unfavorable
B)$400 Favorable
C)$44 Favorable
D)$220 Favorable

Question 44

Billa Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $11.70 per machine-hour and fixed manufacturing overhead cost of $341,596 per period.If the denominator level of activity is 4,700 machine-hours, the predetermined overhead rate would be:

A)$11.70
B)$72.68
C)$84.38
D)$1,170.00

Question 45

Nadelson Incorporated makes a single product--an electrical motor used in many long-haul trucks.The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period.Data concerning the most recent year appear below: The variable component of the predetermined overhead rate is closest to:

A)$1.26 per labor-hour
B)$1.20 per labor-hour
C)$1.64 per labor-hour
D)$1.57 per labor-hour

Question 46

Trumbauer Incorporated makes a single product--an electrical motor used in many long-haul trucks.The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period.Data concerning the most recent year appear below: The fixed overhead volume variance is:

A)$18,482 U
B)$18,482 F
C)$31,482 U
D)$31,482 F

Question 47

Reade Incorporated makes a single product--an electrical motor used in many long-haul trucks.The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period.Data concerning the most recent year appear below: The total manufacturing overhead is underapplied or overapplied by how much?

A)$61,347 Underapplied
B)$32,395 Underapplied
C)$61,347 Overapplied
D)$32,395 Overapplied

Question 48

Ferro Enterprises uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours.During the month of September, the company applied $52,000 in fixed manufacturing overhead cost to units of product.At the end of the month, manufacturing overhead was overapplied by $3,000.If there was no volume variance in September, then the budgeted fixed manufacturing overhead cost for the month was:

A)$49,000
B)$52,000
C)$55,000
D)$58,000

Question 49

Songster Corporation applies manufacturing overhead to products on the basis of standard machine-hours.Budgeted and actual overhead costs for the most recent month appear below: The company based its original budget on 3,500 machine-hours.The company actually worked 3,700 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 3,820 machine-hours.What was the overall fixed manufacturing overhead budget variance for the month?

A)$2,432 Favorable
B)$2,432 Unfavorable
C)$420 Favorable
D)$420 Unfavorable

Question 50

Garrity Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $6.80 per machine-hour and fixed manufacturing overhead cost of $503,272 per period.If the denominator level of activity is 7,600 machine-hours, the variable element in the predetermined overhead rate would be:

A)$6.80
B)$72.16
C)$66.22
D)$73.02

Question 51

Nemes Incorporated makes a single product--a cooling coil used in commercial refrigerators.The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period.Data concerning the most recent year appear below: The fixed component of the predetermined overhead rate is closest to:

A)$9.10 per labor-hour
B)$5.35 per labor-hour
C)$6.36 per labor-hour
D)$10.81 per labor-hour

Question 52

Mcgreal Incorporated has provided the following data concerning its overhead variances for the most recent period: The total of the overhead variances is:

A)$17,666 F
B)$5,962 U
C)$17,666 U
D)$5,962 F

Question 53

Brister Incorporated has provided the following data concerning its overhead variances for the most recent period: The total manufacturing overhead is underapplied or overapplied by how much?

A)$7,136 Overapplied
B)$7,136 Underapplied
C)$27,296 Overapplied
D)$27,296 Underapplied

Question 54

Goolden Electronics Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs).The company had budgeted its fixed manufacturing overhead cost at $58,000 for the month and its level of activity at 2,500 MHs.The actual total fixed manufacturing overhead was $61,200 for the month and the actual level of activity was 2,600 MHs.What was the fixed manufacturing overhead budget variance for the month to the nearest dollar?

A)$880 Unfavorable
B)$880 Favorable
C)$3,200 Favorable
D)$3,200 Unfavorable

Question 55

Alapai Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs).The company has provided the following data for the most recent month: What was the total of the variable overhead rate and fixed manufacturing overhead budget variances for the month?

A)$3,720 Favorable
B)$2,280 Unfavorable
C)$1,840 Favorable
D)$1,880 Unfavorable

Question 56

Maertz Corporation applies manufacturing overhead to products on the basis of standard machine-hours.The budgeted fixed manufacturing overhead cost for the most recent month was $10,890 and the actual fixed manufacturing overhead cost for the month was $10,540.The company based its original budget on 3,300 machine-hours.The standard hours allowed for the actual output of the month totaled 3,240 machine-hours.What was the overall fixed manufacturing overhead budget variance for the month?

A)$198 Unfavorable
B)$350 Unfavorable
C)$198 Favorable
D)$350 Favorable

Question 57

Bartoletti Fabrication Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs)at $4.60 per MH.The company had budgeted its fixed manufacturing overhead cost at $65,000 for the month.During the month, the actual total variable manufacturing overhead was $22,080 and the actual total fixed manufacturing overhead was $63,000.The actual level of activity for the period was 4,600 MHs.What was the total of the variable overhead rate and fixed manufacturing overhead budget variances for the month?

A)$1,080 Unfavorable
B)$1,080 Favorable
C)$920 Unfavorable
D)$920 Favorable

Question 58

At the beginning of last year, Monze Corporation budgeted $600,000 of fixed manufacturing overhead and chose a denominator level of activity of 100,000 direct labor-hours.At the end of the year, Monze's fixed manufacturing overhead budget variance was $8,000 unfavorable.Its fixed manufacturing overhead volume variance was $21,000 favorable.Actual direct labor-hours for the year were 96,000.What was Monze's actual fixed manufacturing overhead for last year?

A)$563,000
B)$579,000
C)$608,000
D)$592,000

Question 59

Potestio Incorporated makes a single product--a critical part used in commercial airline seats.The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period.Data concerning the most recent year appear below: The total of the overhead variances is:

A)$34,955 U
B)$45,030 F
C)$34,955 F
D)$45,030 U

Question 60

Gremminger Incorporated makes a single product--a critical part used in commercial airline seats.The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period.Data concerning the most recent year appear below: The variable overhead rate variance is:

A)$19,404 F
B)$17,952 F
C)$19,404 U
D)$17,952 U

Question 61

The fixed overhead budget variance is:

A)$18,000 U
B)$18,000 F
C)$45,495 U
D)$45,495 F

Question 62

The fixed overhead volume variance is:

A)$63,495 U
B)$45,495 F
C)$45,495 U
D)$63,495 F

Question 63

The fixed overhead budget variance is:

A)$16,000 F
B)$12,234 F
C)$12,234 U
D)$16,000 U

Question 64

Leshem Incorporated makes a single product--an electrical motor used in many long-haul trucks.The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period.Data concerning the most recent year appear below: The variable overhead rate variance is:

A)$9,184 U
B)$8,528 F
C)$9,184 F
D)$8,528 U

Question 65

The fixed overhead volume variance is:

A)$12,234 U
B)$28,234 F
C)$28,234 U
D)$12,234 F

Question 66

The variable component of the predetermined overhead rate is closest to:

A)$2.68 per labor-hour
B)$3.02 per labor-hour
C)$2.93 per labor-hour
D)$2.41 per labor-hour

Question 67

What did Tantanka use as a predetermined overhead rate for fixed manufacturing overhead?

A)$85.50 per machine-hour
B)$86.64 per machine-hour
C)$87.40 per machine-hour
D)$90.00 per machine-hour

Question 68

What was Tantanka's fixed manufacturing overhead volume variance?

A)$5,700 Unfavorable
B)$14,440 Unfavorable
C)$28,500 Favorable
D)$34,200 Unfavorable

Question 69

If the denominator level of activity is 6,100 machine-hours, the variable component in the predetermined overhead rate would be:

A)$5.20 per machine-hour
B)$44.24 per machine-hour
C)$39.68 per machine-hour
D)$44.88 per machine-hour

Question 70

What was Tantanka's variable overhead efficiency variance?

A)$5,400 Favorable
B)$5,472 Unfavorable
C)$21,600 Unfavorable
D)$51,000 Unfavorable

Question 71

If the denominator level of activity is 6,100 machine-hours, the fixed component in the predetermined overhead rate would be:

A)$520.00 per machine-hour
B)$39.68 per machine-hour
C)$5.20 per machine-hour
D)$44.88 per machine-hour

Question 72

The variable overhead efficiency variance is:

A)$2,907 U
B)$2,250 U
C)$2,907 F
D)$2,250 F

Question 73

The fixed manufacturing overhead budget variance for the period is closest to:

A)$2,440 F
B)$1,200 U
C)$1,999 U
D)$704 F

Question 74

The fixed manufacturing overhead volume variance for the period is closest to:

A)$1,240 U
B)$496 F
C)$1,736 F
D)$516 F

Question 75

The fixed component of the predetermined overhead rate is closest to:

A)$16.73 per labor-hour
B)$6.19 per labor-hour
C)$8.36 per labor-hour
D)$12.38 per labor-hour

Question 76

The variable overhead rate variance is:

A)$31,901 U
B)$31,244 F
C)$31,901 F
D)$31,244 U

Question 77

The overhead applied to products during the period was closest to:

A)$30,000
B)$30,240
C)$27,300
D)$29,400

Question 78

The predetermined overhead rate is closest to:

A)$21.00 per hour
B)$21.43 per hour
C)$23.08 per hour
D)$22.62 per hour

Question 79

The predetermined overhead rate is closest to:

A)$22.76 per labor-hour
B)$11.38 per labor-hour
C)$17.74 per labor-hour
D)$8.87 per labor-hour

Question 80

If the denominator level of activity is 6,200 machine-hours, the predetermined overhead rate would be:

A)$520.00 per machine-hour
B)$5.20 per machine-hour
C)$44.24 per machine-hour
D)$39.04 per machine-hour